Chris’ Corner



Winter is coming!



A storm is blowing through the real estate sector. Affordability is at a low with high home prices and higher mortgage rates. The 30-year fixed rate is currently at 6.67%, up from around 3% a year ago. With affordability lowering, we are seeing fewer listings close. Our transactional sales (primarily just listed and just sold postcards) are down following the market. I expect that the market will be in a lull throughout much of next year until either buyer/seller sentiment changes or affordability changes with either the easing of real estate prices or lowering interest rates. Given the Fed guidance, it is unlikely we’ll see big changes.



As a company, we are poised to weather the winter. We have stored up our wood (i.e., paper inventory) and are incrementally working to capture more business outside the real estate market. While I don’t expect we’ll see a lot of growth in 2023, we’re working to maintain the level of business we have today.



We are starting to look forward to Spring. Our new facility in San Leandro is moving along. We have removed the office areas in the warehouse portion and are now focused on the sprinklers, electrical, and air. With the fresh spring air, we’ll start our move, and if all goes well by mid-year, we will be fully operating out of the new building in CA.



Our team is working diligently to close out this year. We’ll have a record Q4 PSP season this year, shipping and mailing out millions of greeting cards. Each of those cards will bring a smile of joy to its recipient as they welcome Christmas and the New Year. Bundle up for the winter, spend time with your families and friends and recognize how truly blessed we all are.



Merry Christmas!